Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

August 6, 2021

Consolidated Financial Results

for the Three Months Ended June 30, 2021

(Under Japanese GAAP)

Company name:

YUASA TRADING CO., LTD.

Listing:

Tokyo Stock Exchange

Securities code:

8074

URL:

https://www.yuasa.co.jp

Representative:

Hiroyuki Tamura, Representative Director, President & CEO

Inquiries:

Hideki Tani, General Manager Finance Dept.

Telephone:

+81-3-6369-1366

Scheduled date to file quarterly securities report:

August 10, 2021

Scheduled date to commence dividend payments:

-

Preparation of supplementary material on quarterly financial results: None

Holding of quarterly financial results briefing:

None

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2021 (from April 1, 2021 to June 30, 2021)

(1) Consolidated operating results (cumulative)

(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Three months ended

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

June 30, 2021

94,925

-

833

(43.4)

1,134

(35.2)

732

(36.9)

June 30, 2020

94,338

(12.8)

1,471

(18.7)

1,750

(15.1)

1,161

(17.4)

Notes: 1. YUASA TRADING CO., LTD. (the "Company") has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant revised ASBJ regulations from the beginning of the first quarter of the current fiscal year, and each figure for the three months ended June 30, 2021, is the figure after applying said accounting standard and relevant revised ASBJ regulations. The percentage of year-on-year change is not shown for net sales. If said standard were not applied, net sales would be ¥99,414 million (up 5.4% year on year).

2. Comprehensive income

For the three months ended June 30, 2021:

¥220 million

[(86.5)%]

For the three months ended June 30, 2020:

¥1,637 million

[54.8%]

Basic earnings

Diluted earnings

per share

per share

Three months ended

Yen

Yen

June 30, 2021

33.16

32.94

June 30, 2020

52.30

51.94

(2) Consolidated financial position

Total assets

Net assets

Equity-to-asset ratio

As of

Millions of yen

Millions of yen

%

June 30, 2021

226,560

88,900

39.0

March 31, 2021

237,487

90,242

37.7

Reference: Equity

As of June 30, 2021:

¥88,293 million

As of March 31, 2021:

¥89,601 million

2. Cash dividends

Annual dividends per share

First quarter-end

Second quarter-end

Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended

-

30.00

-

70.00

100.00

March 31, 2021

Fiscal year ending

-

March 31, 2022

Fiscal year ending

March 31, 2022

49.00

-

74.00

123.00

(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Basic earnings

owners of parent

per share

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Six months ending

218,100

-

4,600

12.9

5,000

9.1

3,280

10.8

148.63

September 30, 2021

Full year

471,000

-

11,700

30.2

12,500

24.9

8,200

18.3

371.56

Notes: 1. Revisions to the earnings forecasts most recently announced: None

2. The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant revised ASBJ regulations from the beginning of the first quarter of the current fiscal year, and the consolidated earnings forecasts above are based on the figures after applying said accounting standard and relevant revised ASBJ regulations. The percentage of year-on-year change is not shown for net sales. If said standard were not applied, net sales would be ¥227,700 million for the six months ending September 30, 2021 (up 12.6% year on year) and ¥492,000 million for the full year (up 13.8% year on year).

* Notes

  1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
  2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
  3. Changes in accounting policies, changes in accounting estimates, and restatement
    1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
    2. Changes in accounting policies due to other reasons: None
    3. Changes in accounting estimates: None
    4. Restatement: None
  5. Number of issued shares (common shares)
    1. Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2021

23,155,882 shares

As of March 31, 2021

23,155,882 shares

(ii) Number of treasury shares at the end of the period

As of June 30, 2021

1,055,533 shares

As of March 31, 2021

1,071,190 shares

  1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended June 30, 2021

22,100,444 shares

Three months ended June 30, 2020

22,208,242 shares

Note: The shares of the Company held by the "Board Incentive Plan (BIP) Trust" are included in the number of treasury shares at the end of the period (196,129 shares as of June 30, 2021 and 196,129 shares as of March 31, 2021). Also, the shares of the Company held by the "Board Incentive Plan (BIP) Trust" are included in treasury shares that are deducted for calculation of the average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) (196,129 shares for the three months ended June 30, 2021 and 79,375 shares for the three months ended June 30, 2020).

  • Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
  • Proper use of earnings forecasts, and other special matters (Caution regarding forward-looking statements)
    The forward-looking statements, including earnings forecasts, contained in this document are based on information currently available to the Company and on certain assumptions deemed to be reasonable. These statements do not purport that the Company pledges to realize such statements. Actual business and other results may differ substantially due to various factors. For the suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof, please refer to "1. Qualitative information regarding settlement of accounts for the first three months, (3) Explanation of consolidated earnings forecasts and other forward-looking statements" on page 5 of the attached material.

Attached Materials

1. Qualitative Information Regarding Results for the First Three Months .....................................................................

2

(1)

Explanation of operating results..............................................................................................................................

2

(2)

Explanation of financial position ............................................................................................................................

5

(3)

Explanation of consolidated earnings forecasts and other forward-looking statements..........................................

5

2. Quarterly consolidated financial statements and significant notes thereto .................................................................

6

(1)

Consolidated balance sheet .....................................................................................................................................

6

(2)

Consolidated statement of income and consolidated statement of comprehensive income ....................................

8

Consolidated statement of income (cumulative) .....................................................................................................

8

Consolidated statement of comprehensive income (cumulative) ............................................................................

9

(3)

Notes to quarterly consolidated financial statements ............................................................................................

10

Notes on going concern assumption......................................................................................................................

10

Notes on significant changes in the amount of shareholders' equity .....................................................................

10

Change in Accounting Policy ................................................................................................................................

10

Additional information ..........................................................................................................................................

11

Segment information .............................................................................................................................................

12

1

1. Qualitative Information Regarding Results for the First Three Months

  1. Explanation of operating results
    The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant revised ASBJ regulations from the beginning of the first quarter of the current fiscal year. Therefore, the following explanation of the operating results shows the actual values of the net sales for the same quarter during the previous fiscal year, which do not retroactively apply the "Accounting Standard for Revenue Recognition," without showing the net sales compared to the same quarter during the previous fiscal year (%).
    For details, please refer to "Change in Accounting Policy" of "(3) Notes to quarterly consolidated financial statements" in "2. Quarterly consolidated financial statements and significant notes thereto."
    The prospects for the Japanese economy during the three months under review (April 1, 2021 to June 30, 2021) remain uncertain with the reissuing of a declaration of a state of emergency and the spread of infection with variants as the spread of the novel coronavirus infection (COVID-19) continues despite the fact that vaccinations have begun.
    In the industrial field, there are signs of recovery in capital investment, and production activity is also trending strongly around the semiconductor and automobile related industries. Moreover, in the construction and housing field, the number of new housing starts gradually recovered with a focus on condominiums.
    Economic activity stagnated overseas due to the impact of the spread of COVID-19 in some Southeast Asian countries despite signs of economic recovery centered on the U.S. and China.
    Under such circumstances, the Group started the second year of the "Growing Together 2023" Mid-term Management Plan covering the three years from April 2020 to March 2023, which constitutes the second stage of realizing the "YUASA VISION 360" in anticipation of the 360th anniversary of the Company's founding in 2026. Aiming for growth as a "TSUNAGU Service Integrated Shosha Group," we executed various policies under the basic policies of a "growth business strategy," "core business strategy," and "strengthening management foundation" while also strengthening our initiatives directed at "ESG" and "SDGs."
    Regarding the "growth business strategy," we concentrated on the development of new products and services such as climate change, prevention of infection, and labor-saving measures based on the understanding that growth businesses are businesses that solve social issues.
    As the "core business strategy," we merged YUASA TECHNICAL ENGINEERING CO., LTD. and YUASA PROMATEC CO., LTD. in April 2021 to launch YUASA NEOTEC CO., LTD. as well as advance group management efficiency and business expansion while also promoting initiatives directed at the one-stop display of comprehensive strength.
    Under "strengthening management foundation," we will establish our competitive superiority utilizing data and IT technologies with the goal of transforming into a digital trading company shifting "From Single Item Business to Integrated Product-Service" through the promotion of DX. Moreover, we will focus our efforts on carbon neutrality directed at a decarbonized society, formulate a "sustainability declaration" and "action plan" around October 2021 to continue to evolve our sustainability management, and further strengthen our "ESG" and "SDGs" initiatives.
    Net sales for the three months under review was ¥94,925 million (¥94,338 million in the same quarter of the previous fiscal year). Operating profit was ¥833 million (down 43.4% year on year), ordinary profit was ¥1,134 million (down 35.2 % year on year), and profit attributable to owners of parent was ¥732 million (down 36.9% year on year).
    Furthermore, net sales shows the actual value for the same quarter of the previous fiscal year, which does not retroactively apply the "Accounting Standard for Revenue Recognition."
    Results by reportable segment are as follows:

    Regarding the Industrial Equipment & Tools Division, the factory operation rate rose due to the improvement in economic activity, and a recovery was seen in the demand for cutting tools, measuring equipment, and control equipment, etc. Moreover, demand directed at semiconductor related industries

2

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Yuasa Trading Co. Ltd. published this content on 20 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 August 2021 08:03:06 UTC.